The changes, which also brought the sectors into line with those defined by the Association of British Insurers, saw the familar Cautious, Balanced and Active Managed sectors replaced by an eventual four ‘Mixed Investment’ sectors that instead are prosiacally named according to the equity quotient in the underlying fund portfolios.

Advisers therefore now have a choice of investing in:

• Mixed Investment 0-35% Shares (new for the IMA)

• Mixed Investment 20-60% Shares (the old ‘Cautious Managed’)

• Mixed Investment 40-85% Shares (the old ‘Balanced Managed’)

• Flexible Investment (the old ‘Active Managed’).

Of these overlapping options, the 40-85% sector that has replaced balanced managed is perhaps the natural home for many md-market clients - and for a good chunk of the risk-rated funds that are becoming equally prevelant in the suitability-obsessed post-RDR world.

This special report will give an overview of how the changes to these sectors have affected fund selection, how balanced managed funds in particular are adapting to the change in name in terms of asset allocation, and finally how risk-rated and risk-targeted funds fit into this seemingly versatile sector grouping.

Further reading:

Guide to the Mixed Investment Sectors

This special report is sponsored by Axa Framlington. All editorial is independent.